Greece has recorded the largest percentage increase in investment volume within the European Union, according to an announcement by the country's Ministry of Finance.
However, despite this significant growth, Greece continues to rank last among EU member states when it comes to investment as a percentage of GDP.
Data from Eurostat reveals that Greece's investments—measured as gross fixed capital formation—currently account for less than 14% of its GDP. This is substantially below the EU and Eurozone averages, which stand at 21.8% and 21.6%, respectively.
Although investments in Greece have risen compared to previous years—up from 10.7% of GDP in 2019—progress remains slow. In 2008, investments accounted for 22.9% of GDP, illustrating a sharp decline over the years. Despite recent gains, Greece has not been able to move up from the last spot in the EU in terms of investment relative to its economic output. This raises questions about the optimism expressed by the Ministry of Finance, as investment remains a weak point for the Greek economy.
In addition to investment figures, the Ministry also highlighted Greece’s success in increasing its share of global goods exports, a promising sign for the country's trade outlook.
Regarding public debt, the ministry pointed out that Greece has made significant strides in reducing its debt in recent years. Nevertheless, Greece still holds the highest debt-to-GDP ratio in the EU, despite the reduction. While the ratio has fallen due to inflation and GDP growth, the country's debt has increased in nominal terms, tempering the overall positive narrative of fiscal improvement.
Read more: Eurostat figures
(Source: Naftemporiki)